Ron has made deposits of $80.00 into hissavings account at the end of every threemonths for 10 years. If interest is 12% perannum compounded semi-annually and heleaves the accumulated balance for another4 years, what would be the balance in hisaccount then?

The compound interest is when the interest earned in a period is reinvested thereby earning more…

Answered: Ron has made deposits of $80.00 into…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.
Dylan deposits $10,000 now and makes an additional deposit of $5,000 at the end of Year 3 in the same account. Determine the balance in the account at the end of 10 years if the interest rate is a nominal 8%, compounded quarterly
For the last four years Joe has made deposits of $200 at the end of every six months earning interest at 6% compounded semi-annually. If he leaves the accumulated balance in an account earning 7% compounded quarterly, what will the balance be in Joe's account at the end of another ten years?
For the last six years Joe has made deposits of $400 at the end of every six months earning interest at 6% compounded semi-annually. If he leaves the accumulated balance in an account earning 7% compounded quarterly, what will the balance be in Joe's account at the end of another nine years?
At the beginning of each month, Francisco deposits $7,500 into an investment account. If the interest rate is 2% monthly, compounded each month, calculate the amount after 3 years?
Nancy deposits $7,000 into an account that credits interest at the end of each year. The effective annual interest rate is 5%, but starting with the fifth year the interest rate increases to 7%. What is the accumulated value of the account after 10 years?
Vincent deposited $1,300 at the end of every month into an RRSP for 9 years. The interest rate earned was 4.25% compounded semi-annually for the first 4 years and changed to 4.50% compounded monthly for the next 5 years. What was the accumulated value of the RRSP at the end of 9 years? Round to the nearest cent
Kyle borrowed P100,000 to be paid in 10 years, and established a sinkingfund to provide for the payment of this obligation. The deposits with thefund will be made at the end of every six months. If money is worth 8%compounded semi-annually, what should be the amount of each deposit.
Jason makes six EOY deposits of $2,000 each in savings account paying 5% compounded annually. If the accumulated account balance is withdrawn four years after the last deposit, how much money will be redrawn?
Seamus has made deposits of $84 into his savings account at the end of every month for 20 years. if interest is 11% per annum compounded semi annually and he leaves the accumulated balance for another 5 years what would be the balance in his account then

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Ron has made deposits of $80.00 into his savings account at the end of every three months for 10 years. If interest is 12% per annum compounded semi-annually and he leaves the accumulated balance for another 4 years, what would be the balance in his account then?